The Financial Action Task Force (FATF) is a global watchdog that develops policies for curbing money laundering and financing of terrorism (ML/TF). It sets standards and guidelines for all countries to adopt, as well as monitors and evaluates countries on their performance. The aim is to promote countries to adopt FATF Recommendations and in doing so, preserve the integrity of the global financial system.
In 2018, the FATF placed Pakistan on the ‘grey-list’ – citing ‘structural deficiencies’ that resulted in failure to effectively target TF/ML. Since 2018, Pakistani authorities have resorted to multi-focal action to improve its performance. This effort culminated into the passage and amendments of around 15 laws and over 30 rules/regulations, including comprehensive amendments to the Anti-Terrorism Act, 1997 and the Anti-Money Laundering Act, 2010. As a result, Pakistan registered significant progress in its Action Plan, and is now compliant on 24 out of the 27 Action Plan points.
This report, “Measuring Pakistan’s Technical Compliance with the FATF Recommendations” is our most comprehensive work yet on Pakistan’s progress with regards to the FATF’s 40 Recommendations. This report aims to provide an objective, independent assessment of Pakistan’s performance based on FATF methodology and the evaluation experience of other states. Additionally, it seeks to provide clarity to both domestic and international policymakers while also addressing misconceptions regarding Pakistan’s efforts to abide by its international obligations.
RSIL’s previous work on FATF:
- Analyzing Pakistan’s Compliance on the FATF Action Plan
- Mapping Pakistan’s Compliance with FATF Recommendations
Team: Jamal Aziz, Noor Fatima Iftikhar, Mubashar Rizvi, Alina Arif, Saman Iqbal
